CUSTOMIZED, COMPREHENSIVE SOLUTIONS CUSTOMIZED, COMPREHENSIVE SOLUTIONS

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1 CUSTOMIZED, COMPREHENSIVE SOLUTIONS CUSTOMIZED, COMPREHENSIVE SOLUTIONS Institutional Brokerage Services Institutional Brokerage Services Northern Trust Securities, Inc. Northern Trust Securities, Inc.

2 A TRUSTED HERITAGE Today, more than ever, your organization requires customized capital markets solutions delivered by a strong, trusted partner with integrity and expertise. That partner is Northern Trust. We offer you a history of strength and stability, global expertise, innovative technology and renowned service to meet your needs, now and in the future.

3 SERVICE, EXPERTISE, INTEGRITY As an institutional investor, you require a financial services partner with a singular focus on delivering creative solutions tailored to your specific needs. With more than 20 years of experience serving institutional and investment manager clients, NTSI offers you a longstanding commitment to service and execution. You can rely on our integrity; we take a consultative approach that places your interests at the center of our actions and decisions. Our experienced professionals help you develop and implement forward-thinking, risk-aware strategies backed by the highest of standards, capital strength and leading-edge technology. Northern Trust is one of the world s leading providers of asset servicing, asset management and wealth management services. Founded in 1889, we have a longstanding commitment to service, expertise and integrity. Today we are a global leader in combining exceptional client service with innovative solutions and technology expertise. Northern Trust offers you access to capital markets through Northern Trust Securities, Inc. (NTSI), a wholly owned subsidiary of Northern Trust Corporation. Consistent with Northern Trust s strong heritage of building long - lasting relationships, NTSI professionals work closely with partners in banking, asset servicing and asset management to offer you integrated solutions. northerntrust.com Institutional Brokerage Services 1 of 8

4 You want a partner aligned, both strategically and culturally, with your objectives and principles. NTSI is committed to being that partner providing you with superior service, innovative technology and shared values. Strong and Stable Counterparty Strength in balance sheet and capital ratios A heritage of stability and strong risk management More than 120-year history of reliability and strong ethics A Unique Business Model You Can Trust Agency-only trading; no proprietary trading, corporate underwriting, or other activity that might put us in conflict with your interests Complete transparency and anonymity in the marketplace Broker-neutral trade cost analytics powered by Bloomberg, with more than 50 benchmarks for relative and absolute comparison Expertise in Trading Proven trading results Strength as a global broker, custodian and investment manager Our approach to client partnerships is grounded in a commitment to delivering the people, the tools and the technology to make your job easier and help you focus on what really matters. Best-in-Class Service Customized solutions designed to meet client-specific needs Electronic trade affirmation to support accurate portfolio reconciliations Full connectivity to Northern Trust s global custody and fund administration technology, supporting seamless communications and straight-through processing Scale plus service; expertise and technology focused on your individual needs 2 of 8 Institutional Brokerage Services northerntrust.com

5 INTEGRATED TEAMS ORGANIZED AROUND YOU Working with our seasoned professionals, you ll Correspondent Banks Family Offices Foundations and Endowments Healthcare Organizations Insurance Companies Investment Managers Large Corporations Public and Taft-Hartley Funds RU ST CT UR ED FI N ANC E N IN CO SURA M P N CE AN IES concentrate on the needs of: E AR S THC ON HEAL IZATI N ORGA PRI TEC HN ME IO objectives. NTSI s professionals are aligned to I RV SE O LO CE GY VA T offers focused solutions that help you pursue your CLIENT-CENTRIC FOCUS T EN S TM S INVE AGER MAN who understands your business environment and CORRE S BANPOND KS EN T F & OUN EN D DO ATION S WM ENTS You need an experienced financial partner LA CORPO RGE RAT IO NS best practices utilized by your peers. MA NA G E PUBLIC FINANCE institutional investors in your field, and can share TD TAFDS AN IC EY FUN L B L PU ART H ON Y MI L FA FICES OF integrated team who works exclusively with SSION MANAGEME NT MMI CO receive the dedicated support of an expert, TRAN SITI ICES S O N IO UT C XE V SER T EN Finance and Structured Finance solutions. You H BILIT Y M E Prime Services, Commission Management, Public N GT ST including Execution Services, Transition Management, RE intense focus on creative capital markets solutions, TA &S N experience a high level of client service and an & IN northerntrust.com Institutional Brokerage Services 3 of 8

6 You can rely on NTSI s deep and highly experienced team of dedicated traders to execute your trading strategy efficiently and cost-effectively. EXECUTION SERVICES NTSI, acting as agent, provides comprehensive trading services to minimize conflicts of interest, backed by exceptional support before, during and after the trade. Because NTSI does not pursue proprietary trading strategies, you benefit from routing objectivity and enjoy best execution across markets and currencies. NORTHERN TRUST PROGRAM TRADING COST COMPARISON TO PEER UNIVERSE Weighted Average Trade Costs for U.S. Equities (in basis points) A) Micro Cap B) Small Cap C) Mid Cap D) Large Cap Northern Trust Transitions (United States) ITG s Peer Universe (United States) COMPREHENSIVE TRADING SERVICES n Equities, fixed income, options n Global markets n Direct market access n Algorithms n FIX connectivity n Portfolio and block trading EXCEPTIONAL SUPPORT n Agency model n Full transparency n Pre- and post-trade analytics n Seamless integration with Northern Trust custody n Strong service n Access to traders and experts n Third-party independent trade cost analytics and peer comparisons Source: Analysis provided by ITG, Inc. Not to be reproduced or retransmitted without permission. ITG s Peer Universe data is a collection of order-level data from more than 180 investment managers with $8 trillion in annual trade volume. 4 of 8 Institutional Brokerage Services northerntrust.com

7 Below the surface costs are where a transition manager can add value. TRANSITION MANAGEMENT If you are restructuring your assets, NTSI can help you manage cost and risk while gaining timely exposure to your target portfolio. To orchestrate a smooth implementation, a coordinated team of transition, trading and operations specialists in Chicago and London applies rigorous project management discipline, whether you are: Liquidating to raise cash Changing managers within an asset class Reallocating among asset classes Implementing or maintaining short-term exposure to an asset class A Higher-Touch Solution Customized execution strategy and approach are tailored to the needs of each event Team-based approach, with a portfolio manager and strategist assigned to every event Excellence in risk management, with a proven track record of beating pre-trade estimates for 97.3% of transitions over the past five years Alignment with your interests: agency-only trading, no proprietary trading, complete revenue transparency northerntrust.com Institutional Brokerage Services 5 of 8

8 PRIME SERVICES Prime Services offers a flexible brokerage partnership for institutions, investment managers, family offices and active traders. You can leverage one streamlined solution that integrates trade execution, clearing and settlement, securities borrowing, custody and safekeeping of assets and operational support. Trade execution, clearing and settlement across multiple asset classes Fully integrated with Northern Trust s global custody and global fund accounting platforms Securities borrowing and access to hard-to-borrow securities Consolidated portfolio financing Dedicated operational support and interface with multiple executing broker-dealers Extensive support for multiple order entry and order management systems Margin and short selling (leverage and credit) NTSI s Prime Services addresses your changing needs in today s complex, evolving investment environment. A focus on global servicing capabilities, flexible technology and integrated reporting offers you unique advantages One Relationship, One Company, One View. Our experienced professionals help you develop and implement forward-thinking, risk-aware strategies backed by the highest of standards, capital strength and leading-edge technology. 6 of 8 Institutional Brokerage Services northerntrust.com

9 COMMISSION MANAGEMENT To help you unbundle commissions and manage expenses, you can take advantage of comprehensive, flexible Commission Management programs through NTSI. Our programs focus on best execution, superb client servicing, timely crediting of rebates and comprehensive reporting. If Your Organization Is a: Consider: In Order to: n Pension plan n Large institution n Family office n Money manager Commission Recapture Receive rebates and reduce overall trading costs n Money manager looking to pay for research or other 28(e) eligible expenses Client Commission Arrangement Use the commission credits generated at NTSI to pay for 28(e) eligible expenses n Broker n Third-party research firm Commission Sharing Agreement Trade with an execution firm while buying the research of your choice and/or to consolidate trading to selected brokers PUBLIC FINANCE Northern Trust has served the municipal bond marketplace since the early 1900s. Today, we offer public finance expertise to state, county and municipal governments, authorities and agencies; municipal utilities; economic development institutions; educational institutions; and 501(c)(3) issuers. To help you pursue your goals, we provide you with: Tailored solutions A dedicated team of specialists works closely with you to identify your specific needs and objectives, as well as broader considerations in your sector of the public finance market. Strong distribution NTSI s experienced sales force serves thousands of personal and institutional clients with demand for tax-exempt bonds. High-touch service We work closely with you after the transaction is complete to monitor sales results, identify refunding opportunities, and explore future capital as part of our commitment to supporting your long-term interests. PUBLIC FINANCE SOLUTIONS n Debt structuring n Underwriting n Financial advisory services n Direct lending and credit enhancement n Remarketing services northerntrust.com Institutional Brokerage Services 7 of 8

10 STRUCTURED FINANCE Prudent risk management should be a cornerstone of any sophisticated financial program. NTSI s Structured Finance team offers you expertise to manage interest rate risk across a range of scenarios. After assessing your overall financial picture and gaining an understanding of your risk tolerance, time horizon and market outlook, we help you design and implement solutions using interest rate derivatives to pursue a variety of objectives. Risk management of an interest rate-sensitive asset or liability Yield enhancement in a favorable rate environment Synthetically managing the duration of fixed income portfolios without transacting in underlying assets Hedging of future interest rate-sensitive events Converting fixed-rate obligations to floating rates (or vice versa) for fixed income portfolios We develop customized strategies using over-the-counter instruments such as swaps, collars, caps, floors and options to meet your specific needs. Northern Trust uses our strong balance sheet to act as counterparty to trades. To avoid potential conflicts of interest, we do not participate in proprietary trading. INVESTMENT SUCCESS STARTS WITH A TRUSTED PARTNER Navigating the world s financial markets is no simple task. By offering you superior strength and exceptional service backed by a strong heritage in investments we strive to consistently exceed your expectations. FOR MORE INFORMATION Contact your relationship manager or call NTSI Institutional Services at northern trust of 8 Institutional Brokerage Services northerntrust.com

11 NORTHERN TRUST LOCATIONS Abu Dhabi Amsterdam Bangalore Beijing Chicago Dublin Frankfurt Guernsey Hong Kong Jersey Kuala Lumpur Limerick London Luxembourg Manila Melbourne New York Riyadh Singapore Stockholm Tokyo Toronto This material is directed to eligible counterparties and professional clients only and should not be relied upon by retail investors. Northern Trust s Transition Management trading performance is compared to average trading performance of ITG s Peer Group Universe, a universe composed of approximately 180 buy side clients and $2 trillion of trading on a quarterly basis. All comparisons are based on implementation shortfall from order arrival through execution. Costs are denoted as positive values; negative costs represent gains. Only realized trades were included in Northern Trust s Transition Management average cost numbers; no other filtering was applied. Orders with costs greater than the absolute value of 10,000 bps were removed from all of ITG s Peer Group Universe averages. Days to completion represents the average number of full trading days over the order horizon. IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. For more information about this notice, see LEGAL, INVESTMENT AND TAX NOTICE. Information is not intended to be and should not be construed as an offer, solicitation or recommendation with respect to any transaction and should not be treated as legal advice, investment advice or tax advice. Clients should under no circumstances rely upon this information as a substitute for obtaining specific legal or tax advice from their own professional legal or tax advisors. Securities products and services are offered by Northern Trust Securities, Inc. (member FINRA, SIPC), a wholly owned subsidiary of Northern Trust Corporation. Not FDIC Insured May Lose Value No Bank Guarantee

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